Late Deferral Form 5330 Filing

[Below Ground]

Have a small 401(k) plan that was late for one payroll period for a few weeks. (Was caught and corrected within 2 months.) The penalty tax is well under $50. (The cost of a EPCRS filing is obviously not justified.) Is there a level at where the tax is just ignored (no filing) since the amount is so small? I don't know of any, but thought this was a good question to post.

[JanetM]

No de minimus amount. You have to file.

[Below Ground]

Thanks Janet. I was afraid of that, but oh well. What can one do?

[Tom Poje]

but if it is less than $100, (and other conditions are met) then there is no notice requirement and the tax can be paid to the plan. I think you still file the 5330 and then write a note something to the effect that mom said it was ok to pay the plan.

this is described in detail under the VFCP program - 'De Minimus Excise Tax'

[austin3515]

I think we will eventually have a de minimis level of taxes. I have heard that $10 tax payments are a thorn in their side - It costs them about a $100 to process each form so its a big loser for them. Not to mention, the TPA needs to charge about $100 to process it on their end (letters, sign here stickers, etc.).

This should in no way be confused with the actual correction of the late deposit.

[401 Chaos]

Am assuming there is no change on this and that no deminimis threshold really means no threshold such that if the excise tax is less than $2.00 they would still file?